Broadcom Upgraded by Wells Fargo on AI Growth Prospects

Wells Fargo upgraded Broadcom (AVGO) to Overweight from Equal-weight. The firm also raised its price target to $430, up from $410.

Wells Fargo cited two major growth drivers: a partnership with Google on TPU chips and a large backlog of AI infrastructure orders. Consequently, the firm raised its 2026 revenue forecast. Wells Fargo anticipates 116% year-over-year growth in AI semiconductor revenue alone.

The stock jumped 2.6% on Thursday following the upgrade. Investors appear to be looking past recent concerns, including a potential AI spending slowdown and the VMware software ban in China. Instead, the market focuses on Broadcom’s strong positioning in the custom AI chip and networking equipment markets.